Oracle plans new round of layoffs as it borrows billions for AI infrastructure

Published Aug 11, 08:04 PM UTC

Oracle has drawn up plans for a new round of job cuts to reduce payroll as it accumulates billions in debt to fund AI infrastructure, according to sources and an internal document viewed by Business Insider. The cuts could reach double-digit percentages on some teams, with managers asked to provide lists of affected employees before the second quarter begins on September 1. This follows a 13% workforce reduction (21,000 employees) in the 2026 fiscal year. Oracle spent $55.7 billion on infrastructure, including data centers, in FY2026, spending $23.7 billion more cash than it brought in. The company raised $43 billion through debt and $5 billion from stock sales, expecting to raise another $40 billion. Despite 17% revenue growth and 77% growth in cloud infrastructure, Oracle's stock is down nearly 26% this year amid Wall Street concerns over AI infrastructure costs and fears that AI will replace traditional software. Chairman Larry Ellison downplayed these fears on a recent earnings call.